- (1.) THE Income Tax Appellate Tribunal, Delhi referred the following question of law under section 27(1) of the Wealth Tax Act, 1957, hereinafter referred to as 'the Act', for opinion to this Court: In favour of assessee. 'Whether on the facts and in the circumstances of the case, the Tribunal was right in holding that an Association of persons cannot be assessed to wealth -tax under the Wealth Tax Act and thereby upholding the annulment of wealth -tax assessments on the assessee by the ACC ?'
(2.) THE reference relates to the assessment years 1974 -75 to 1976 -77. Briefly stated that facts giving rise to the present Reference are as follows The respondent is an association of persons. It is a Club and has been assessed in the status of an association of persons. On appeal, the Appellate Assistant Commissioner annulled the assessments holding that under the Wealth Tax Act an association of persons cannot be assessed to Wealth -tax which order has been upheld by the Tribunal.
(3.) WE have heard Sri A.K Mahajan, leamed Standing counsel for the revenue and have perused the record.;